Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


ETS Losses Confirmed - Groser Has Explaining To Do

ETS Losses Confirmed - Groser Has Explaining To Do

Sustainability Council Media Statement – 7 November 2012


New documents confirm the ETS has been a net loser for the taxpayer and that the government faces a big deficit in its carbon accounts, contrary to the Climate Change Minister’s denial.

Documents also show that Tim Groser and two other ministers are so keen to play down this inconvenient truth that they requested officials to consider whether the ETS accounts could be changed so that such losses would not form part of the government’s financial statements in future.

Parliament’s Finance and Expenditure Committee sought updated figures on the ETS as part of its consideration of a Bill that would all but gut the scheme. These updated estimates were requested following a Sustainability Council submission that urged the committee to obtain them.

Documents presented to the committee estimate the ETS will be 76 million tonnes of carbon dioxide equivalent in deficit by the end of this year – the total for the first five years of its operation.

These documents also show a credit of 22 million tonnes for the same period resulting from obligations under the Kyoto Protocol. After allowing for this credit, officials report that there is an overall deficit on the government’s carbon accounts of 54 million tonnes for the period from 2008 to 2012.

That is essentially the same figure the Sustainability Council first exposed on September 13 and which the Climate Change Minister then denied on Morning Report. Rather than it being the Sustainability Council that has “got it completely wrong” as he claimed, it is Tim Groser who has some explaining to do.

He has also to explain what the basis is for ministers asking officials to report on “whether ETS units should still be valued in the Crown’s financial statements”. Translated, that means ministers are asking whether local carbon credits given away by the government as corporate welfare and compensation need to be shown as a cost to the taxpayer.

The government has systematically suppressed detail on the ETS accounts so that this very complex scheme is harder still to monitor. It is breathtaking that ministers would ask officials to consider not valuing something that when given away means the recipient no longer needs to pay tax. Such gifts must be recorded as costs to the taxpayer, in line with generally agreed accounting practice.

The government’s current debt of 54 million tonnes of carbon is worth $325 million at the price of $6/tonne that officials used to value it in the estimates presented to Parliament. The debt is $1.3 billion at the $25/tonne price the government uses to consider policy options under the ETS. As this deficit will be paid off at future prices, it is analytically more appropriate to use a forecast future price when assessing its value, and this could be much higher than $25/t.

Carbon budgeting is the route to serious emission reductions. This is the approach the UK is following and it still involves pricing emissions but the emphasis is on working out practical options for cutting carbon and then setting limits on the total volume of emissions for the country over a particular period. It truly caps emissions and maximises the opportunities for funds to be spent in New Zealand.


For full media statement and references see:
http://www.sustainabilitynz.org/docs/ETSLossesConfirmedNovember2012.pdf


ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Gordon Campbell: On What John Key Should Be Asking Joe Biden

No doubt, US Vice-President Joe Biden will be updating Prime Minister John Key on the chances of a TPP vote taking place in the ‘ lame duck’ session of Congress that’s held between the November’s election and the inauguration of a new President in January. More>>

ALSO:

Make NZ Make Again: Greens Will Establish A Minister For Manufacturing

The Green Party announced today that it will establish a Minister for Manufacturing in Cabinet, to better represent the interests of manufacturers and ensure they thrive. The Minister will be inside Cabinet and have responsibility for the long-term interests of the manufacturing sector. More>>

ALSO:

Cannabis Party: Treasury Figures On Cost Of Criminalisation

Figures released by Treasury prove the economic viability of The Cannabis Party's policy, while destroying the credibility of police claims about cannabis harms. More>>

ALSO:

Green Party: Investigation Into Mental Health Facilities Shows Disarray

The Health Minister must urgently launch an inquiry into mental health services, after serious issues with the standard of care at mental health and disability facilities around the country were revealed today, the Green Party said. More>>

ALSO:

Apparently He Means 'Years 0-8': Seymour Announces 4th Partnership Schools Application Round

“The continuing growth of this policy reflects the achievement of the eight existing Partnership Schools, and the strong levels of interest educators and community leaders are showing in the Partnership Schools model and what it offers students and their families,” Mr Seymour says. More>>

ALSO:

Trust Directors: Urban Māori Win Case Against Te Ohu Kai Moana

The National Urban Māori Authority (NUMA) and Te Waipareira Trust have succeeded in their claim over a $20 million trust set up for the benefit of urban Māori, meaning all directors of the trust must represent Māori who are not affiliated with an iwi. More>>

New Model: Carbon Tax Could Lower Emissions And Boost Economy

A carbon tax targeting emissions-intensive industries, along with a revamped Emissions Trading Scheme (ETS), could boost economic growth, with the extra tax generated used to cut GST from 15 percent to 12.5 percent. More>>

ALSO:

Budget Docs Release: ACC Sought $158mn In Budget 2016, Got $26.4mn

The Accident Compensation Commission requested an extra $158 million in funding for 2016/17 from the government ahead of Budget 2016, but Treasury instead recommended an interim payment of just $26.4 million be funded to tackle demographic changes, papers published by the government show. More>>

ALSO:

Submissions Sought: Māori Party Joins Opposition Housing Inquiry

People who are homeless, those who were once homeless, those working with the homeless and concerned New Zealanders are being asked to share their experiences and solutions to this growing issue with the Cross-Party Homelessness Inquiry. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news